Senator pushes delay of flood insurance increases

Efforts to delay flood insurance cost increases tried to federal reforms gained momentum Tuesday. U.S. Sen. Mary Landrieu, D-La., said her Homeland Security Appropriations Bill will block some of the flood insurance cost increases. Her proposal parallels a recent effort by U.S. Rep. Bill Cassidy, R-Baton Rouge, who represents northern Lafourche and Terrebonne parishes.Landrieu’s measure would stop FEMA from raising grandfathered flood-insurance prices for at least a year.Historically, people who built their homes to the existing elevation codes have been allowed to keep their low flood insurance costs even after elevation codes are updated. Reforms to the flood insurance program phase out such grandfathered rates starting next year.Advocates for the reforms — contained in last year’s Biggert-Waters Act — say they are necessary to put the National Flood Insurance Program, which is an estimated $27 billion in debt, on solid financial footing.With the Federal Emergency Management Agency rolling out new flood maps across the country over the coming years, local officials fear the removal of grandfathering will cause some who built to the existing specifications to see massive increases to their insurance costs.It’s one of multiple issues tied to flood insurance reform that officials say could damage the local economy. “These home and business owners played by the rules, purchased properties that were up to code and are now facing exorbitant rate hikes,” Landrieu said. “My legislation will prevent FEMA from raising these rates.“Biggert-Waters makes the NFIP self-sustainable, but it does it on the backs of people who live and work along the coast,” Landrieu said in a news release. Landreiu seeks to block this through her homeland security bill, which includes FEMA’s budget. The proposal will be taken up by the Senate Appropriations Committee Thursday. It will ultimately head to the full Senate and then to a House-Senate conference committee to split wide differences between the two versions. A similar effort was included by Cassidy in the Homeland Security Appropriations Bill passed by the House.Landrieu’s push also includes $10 million more than allotted in President Barack Obama’s budget for the development of new flood maps. The thought, according to Landrieu’s news release, is that the money would be used to fully reflect local levees that are not certified by U.S. Army Corps of Engineers. Reform supporters argue that it is unfair for taxpayers and flood-insurance customers in low-risk areas to continue subsidizing insurance costs for people who live in high-risk areas.“Delaying risk-based flood insurance rates doesn’t delay homeowners’ vulnerability or delay the insolvency of the program,” Steve Ellis of Taxpayers for Common Sense, a Washington-based watchdog group, told The Associated Press on Tuesday. “Lower-risk homeowners will see their rates increase disproportionately to offset the revenue lost from delayed rate increases on higher risk properties.”Last week, FEMA unveiled its new mapping process for including such levees like those in south Lafourche and those going up in lower Terrebonne Parish. FEMA said the new process would be initially incorporated into 25 communities including Lafourche and Terrebonne. It will be incorporated into more locations as money becomes available. It was also announced Tuesday that FEMA’s Associate Administrator David Miller, who oversees the flood insurance program will visit the Gulf Coast on Aug. 8 to tour areas affected by the insurance reforms. It was uncertain whether that trip will include a tour of Terrebonne and Lafourche.

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